Next Investors logo grey

Global expansion results in Cycliq delivering record sales in September quarter


Published 11-OCT-2017 13:23 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Shares in Cycliq Group (ASX:CYQ) rallied more than 10 per cent in mid-morning trading after the company provided a positive update on its September quarter trading.

Total unit sales were up 52 per cent on a quarter on quarter basis with revenues of more than $850,000 representing an increase of 28 per cent on the previous quarter.

The increase in gross margins to a record high of 39.4 per cent in the September quarter compared with the average of 22.6 per cent in fiscal 2007 indicates that CYQ is benefiting from the efficiencies of changes made to its distribution model over the last 12 months.

On this note, CYQ’s Executive Chairman Chris Singleton said, “We have been working on increasing shareholder value with initiatives aimed at improving our margins, and we have developed efficiencies in our supply chain which will compound when our manufacturing joint venture becomes operational”.

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

The joint venture refers to a Memorandum of Understanding negotiated with Thompson and Kenneth Cheung which will provide the company with better buying power and more economical manufacturing through their joint venture partner’s Hong Kong operations.

More than 80 per cent of CYQ’s revenues for the quarter were generated from markets outside of Australia. Consequently, the distribution agreements it has in place in major global regions such as the US, Europe and South-East Asia should work in its favour in fiscal 2018.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.